The range function selects three specific price ranges, an upper range (top of range), a middle range (middle of range) and a lower range (bottom of range).
For high probability trades, we want the price to be in the best possible range. To obtain probability in our trading, we can use the Fibonacci tool to see where the price is most likely to move.
Buying at the bottom of the range and selling at the top of the range is the basis for range trading.
These ranges can be used to know if any range can be used as support or resistance for a move.
To the right of each range zone, a percentage value is displayed to indicate how close the price is to each zone in percentage terms.
How can I trade with just this? We don’t trade only ranges, but I’ll mention a few ways below. We use our additional Smart Money tool and the confirmations next to it to increase the likelihood of trades, but it gives us a very well-defined range in which the price can move.
In crypto trading, a range refers to a specific price level or range within which the price of a particular crypto tends to fluctuate. Traders can use ranges to identify potential buy or sell opportunities, or to set stop-loss and take-profit orders.
One way to use ranges in trading is to identify key support and resistance levels. Support levels are price points where demand is considered strong enough to prevent the exchange rate from falling further. Resistance levels are price points where supply is considered strong enough to prevent the price from rising further. If the price of a crypto breaks through a key resistance level (we expect a move from the middle of the range to the top of the range, or through the top of the range to the formation of a new trend), it may indicate that a bullish trend is forming and this may be the right time to look for a new trend after a sideways move. Conversely, if the price of a crypto falls below a key support level (breaking the middle of the range to the bottom of the range to wait for a move, breaking the bottom of the range to wait for a new downtrend to form), this may indicate that a downtrend is forming.
Another way to use ranges in trading is to identify trading opportunities based on price action. For example, if the price of a crypto has been moving in a narrow range for a long period of time, a trader may look for a breakout from the range as a potential trading opportunity. If the price breaks up, the trader may look for a long opportunity, while if the price breaks down, the trader may look for a short opportunity.
In addition, traders can use the ranges to set stop-loss and take-profit orders. A stop-loss order is an order to sell a crypto at a certain price to limit potential losses. A take-profit order is an order to sell a crypto at a certain exchange rate in order to realise a profit.
It is important to note that the use of ranges in trading is only one of many strategies that traders use to make informed trading decisions and is not guaranteed to be successful. .